About this course: This course teaches you the concepts of risk and expected return. This course presents an overview of the basic concepts and techniques used to construct financial portfolios. You will learn about the investment process and get a very good understanding of economic, industry, and company analyses. We will also look at understanding and interpreting major portfolio management and risk concepts. Through this course, you will discover the basic concepts of Modern Portfolio Theory. In the second half of the course we explore the frameworks to measure investment performance, as well as the various measures of investment performance. Finally, you will learn how to measure performance of equity, bonds and hedge funds. After completing this course, you will be able to appreciate the details that go into the creation of investment portfolios.
Created by: Indian School of Business
Taught by: Ramabhadran Thirumalai, Assistant Professor
Indian School of Business
| Basic Info | Course 2 of 5 in the Financial Markets and Investment Strategy Specialization |
| Level | Beginner |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Basics of Investments
The first module discusses the basics of investment process and the time value of money. The concept of time value of money is extended to value assets with cash flows. In the process, we develop shortcuts for valuing annuities and perpetuities. The student is then introduced to the concept of Risk and Return. The module ends with a discussion of Utility theory.
10 videos, 3 readings
- Video: Investment Process
- Video: Investment Philosophies
- Материал для самостоятельного изучения: 6 Different Investment Philosophies
- Материал для самостоятельного изучения: Common Investment Strategies of Fund Managers
- Video: Introduction to Time Value of Money
- Video: Ordinary Annuity
- Video: Compounding frequency and Effective Annual Rate
- Video: Annuity Due
- Video: Perpetuities and stock valuation
- Video: Expected returns and risk
- Video: Utility theory
- Материал для самостоятельного изучения: Utility theory and Attitude toward Risk
Graded: Week 1 Assessment
WEEK 2
Concept of risk and return
The second module introduces the student to the concept of portfolio math and the concept of diversification. The student is taught how to construct the investment opportunity set with risky assets and risk-free asset.The student is then introduced to the concept of Market portfolio and the Capital market line.
10 videos, 4 readings
- Video: Capital Allocation
- Video: Risky portfolios
- Video: Diversification and efficient frontier
- Video: Two fund separation
- Video: Diversification revisited
- Материал для самостоятельного изучения: The pros' guide to diversification
- Материал для самостоятельного изучения: Diversification: How much is too much?
- Материал для самостоятельного изучения: The 15-Stock Diversification Myth
- Video: Investment opportunity set with two risky assets and a risk-free asset
- Video: Investment opportunity set with three risky assets and a risk-free asset
- Video: The optimal allocation between risky and risk-free assets
- Video: The market portfolio and the capital market line
- Материал для самостоятельного изучения: Does the composition of the market portfolio really matter?
Graded: Week 2 - Assessment
WEEK 3
Understanding investments
This module introduces the CAPM model and the concept of Beta. The student is taught how to calculate the Beta of a security. The student is also introduced to arbitrage pricing theory.
10 videos, 2 readings
- Video: Calculating the CAPM beta
- Материал для самостоятельного изучения: Does the Capital Asset Pricing Model Work?
- Video: The security market line
- Video: Equilibrium
- Video: Disequilibrium
- Video: Estimating beta from data
- Video: Miscellaneous topics on beta
- Video: Determinants of the market risk premium
- Video: Multifactor models
- Video: The arbitrage pricing theory
- Материал для самостоятельного изучения: Multifactor Models
Graded: Week 3 - Assessment
WEEK 4
Security analysis
The main focus of this module is portfolio performance evaluation. You will learn equity valuation.
10 videos, 3 readings
- Video: The arbitrage-free price
- Video: Commonly-used risk factors
- Video: Dividend discount models
- Video: The growth rate of dividends
- Video: Valuation based on comparable firms
- Video: The PEG ratio and other valuation multiples
- Video: Measuring portfolio or fund returns
- Video: Benchmarks for portfolio performance evaluation
- Video: Alternate performance measures
- Материал для самостоятельного изучения: The Challenge: How To Benchmark Your Investment Portfolio
- Материал для самостоятельного изучения: Performance Measurement: The What, Why, and How of the Investment Management Process
- Материал для самостоятельного изучения: The 101 ways to measure portfolio performance
Graded: Week 4 - Assessment
WEEK 5
Final Assessment
This module tests the understanding of the student in the topics covered so far.
Graded: Comprehensive Assessment
FAQs
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Creators
Indian School of Business
The Indian School of Business has successfully put India on the global map of management education by nurturing young leaders with an understanding of developing economies and the society at large. Through innovations in curricula and pedagogy to reflect the shifting business landscape, the ISB is committed to providing the best venue for management education to meet the growing need to develop young leaders who can manage global challenges.
Pricing
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| Access to course materials | Available |
| Access to graded materials | Available |
| Receive a final grade | Available |
| Earn a shareable Course Certificate | Available |
Ratings and Reviews
This course explains the mathematical nuances of portfolio theory really well.
It is a good course. Lecture material (transcript, slides, etc) and reading references are valuable. Reading equations from slides as part of the lecture is not necessary.
This course is like a essential step towards learning financial management. A great course with broad coverage of topics offering in depth and connective understanding.
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Simply excellent. Very good content and learning.